foreclosure

[magjac]

O.K. be nice it's my first time posting...What will happen if the mortgage cos (ist and 2nd mortgage)foreclose on my house. Background, we moved out of state and are renting where my husband works. Tried to sell our house (1 year), didn't happen, found renters Ugh ! just found out they aren't going to pay rent and say they have 30 days to move... We can't pay the mortgage and our rent, have had financial problems,ie (lack of $$$) since we adopted baby. We can't seem to work enough or long enough to catch back up Hate the idea of foreclosure or even thinking about Bankruptcy, running out of options...plan on calling attorney on Monday, but really upset tonight, advise please (you can throw in a laugh or too, I still have a little sense of humor left)

 

[cmcclaff]

I am NOT an Attorney, I am in the mortgage business. I can tell you this, when you are delinquent on your mortgage payments, the mortgage company will of course foreclose on your property. They will sell your home for as much as they can (it could be anywhere from 50% to 100% of the value of the home) and you will be responsible for the difference, and unpaid interest, and attorney's fees etc...

You would be much better off selling the home yourself at a reduced price, since the mortgage company is just going to sell the house as quickly as possible. Which of course means lowering the price so someone will buy it fast.

I'm assuming, that in trying to sell your home, you lowered the price to just more than you owe on the home. This would at least pay your mortgage(s) off and you would owe nothing else then.

A foreclosure will ruin your credit for several years and it will probably leave you with a debt to the mortgage company for the deficiency balance.

Good Luck

 

[David J. Miller]

If there is no equity in the home, you could contact the 2nd mortgage lender and request a short sale. If they agree, this would protect you from a deficiency judgement.

 

[magjac]

good advice

Good advice, we contacted our realtor instead of looking for a bankruptcy attorney, and lowered the price on our house, really low!!! We may already have a buyer. If we can get this to go through, we will be just fine...things are looking up. It's hard to think clearly when you are under stress, I appreciate the advice!

[Edited by magjac on 12-05-2000 at 02:17 PM]